Pakistan Southern Punjab Poverty Alleviation Project Supervision Report Main Report and Appendices
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Pakistan Southern Punjab Poverty Alleviation Project Supervision Report Main report and appendices Mission Dates: 15 - 30 March 2019 Document Date: 13/05/2019 Project No. 1100001514 Report No. 5037-PK Asia and the Pacific Division Programme Management Department Abbreviations and Acronyms AWPB Annual Work Plan& Budget BISP Benazir Income Support programme COs Community Organizations CPI Community Productive Infrastructure DMUs District Management Units FFS Farmers Field School FVA Female Veterinary Assistants GoP Government of Pakistan GoPb Government of the Punjab HHs Households IFAD International Fund for Agricultural Development IRM Institute of Rural Management LAMP Livestock Access to Market Project LSOs Local Support Organizations M&ES Monitoring & Evaluation System MIS Management Information System NARC National Agriculture Research Institute NRSP National Rural Support Programme PC-I Planning Commission Proforma 1 PSC Project Steering Committee P&D Planning & Development PBAS Performance Based Allocation System PD Project Director PDR Project Design Report PMU Project Management Unit, PSC Poverty Score Card RIMS Results & Impact Management System SPPAP Southern Punjab Poverty Alleviation Project TEVTA Technical Education and Vocational Training Authority TOR’s Terms of Reference UCs Union Councils UVAS University of Veterinary and Animal Sciences VOs Village Organizations WA Withdrawal Application 1/39 A. Project Overview Region: Asia and the Pacific Division Project at Risk Status: Not at risk Country: Pakistan Environmental and B Southern Punjab Poverty Alleviation Social Category: Project Name: Project Climate Risk not available yet Project Id: 1100001514 Classification: Punjab Planning and Project Type: Rural Development Executing Institution: Development Department CPM: Hubert Boirard Implementing not available yet Project Director: not available yet Institutions: Districts of Bahawalpur, Bahawalnagar, Project Area: Muzaffargarh, Rajanpur, Rahim Yar Khan and Dera Ghazi Khan (DG Khan) Approval Date 15/12/2010 Last audit receipt 21/01/2019 Signing Date 30/09/2011 Date of Last SIS Mission 30/03/2019 Entry into Force Date 30/09/2011 Number of SIS Missions 13 Available for Disbursement Date 30/09/2011 Number of extensions 3 First Disbursement Date 20/09/2013 Effectiveness lag 9 months MTR Date 07/01/2015 Original Completion Date 30/09/2016 Current Completion Date 30/09/2022 Financial Closure not available yet Project total financing IFAD Financing breakdown IFAD $36,500,000 IFAD $10,000,000 Asia and the Pacific Division $2,900,000 IFAD $30,169,000 IFAD $25,000,000 Domestic Financing breakdown Beneficiaries $3,321,000 Beneficiaries $5,400,000 National Government $5,630,000 National Government $76,200,000 Co-financing breakdown, Project total financing $195,120,000 Current Mission Mission Dates: 15 - 30 March 2019 Days in the field: 7 2/39 Mission composition: Mr Qaim Shah, Senior Country Programme Officer, IFAD, Mr Rab Nawaz Institutions and Management Specialist/IFAD Consultant, Mr Waseem Shahzad, Procurement Specialist/IFAD Consultant, Mr Fida Muhammad Khan, NRM and M&E Specialist/IFAD Consultant and Mr Arsalan Hanif, Financial Management Specialist/IFAD Consultant Field sites visited: Union council Sukhail, Bahawalpur, Union Council Kalia Shah, Bahawalnagr, Union council Jhalarin, Muzaffargarh, Union Council Barthi, DG Khan and Union Council Sikhaniwala, Rajanpur (4 LSOs and around 40 COs met) – visits to housing for poor, meetings with vocational training beneficiaries and CPIs 3/39 B. Overall Assessment Key SIS Indicator #1 ∅ Rating Key SIS Indicator #2 ∅ Rating Likelihood of Achieving the Development 5 Assessment of the Overall Implementation 4 Objective Performance Effectiveness and Developmental Focus 5 Project Management 4 Effectiveness 4 Quality of Project Management 4 Targeting and Outreach 5 Knowledge Management 4 Gender equality & women's participation 5 Value for Money 5 Agricultural Productivity 5 Coherence between AWPB and 3 Implementation Nutrition 4 Performance of M&E System 4 Adaptation to Climate Change 4 Requirements of Social, Environmental and 4 Climate Assessment Procedures (SECAP) Sustainability and Scaling-up 5 Financial Management and Execution 4 Institutions and Policy Engagement 4 Acceptable Disbursement Rate 3 Partnership-building 5 Quality of Financial Management 4 Human and Social Capital and 5 Quality and Timeliness of Audit 4 Empowerment Counterparts Funds 5 Quality of Beneficiary Participation 5 Compliance with Loan Covenants 5 Responsiveness of Service Providers 4 Procurement 4 Environment and Natural Resource 5 Management Exit Strategy 5 Potential for Scaling-up 5 Relevance 5 4/39 C. Mission Objectives and Key Conclusions Background and Main Objective of the Mission SPPAP is designed to assist the Government achieve its economic growth and poverty alleviation objectives. The overall goal of the project is to contribute to the reduction of poverty in Southern Punjab. The project objective is to increase incomes of 80,000 poor households (now 131,000 with additional financing of US$ 25 million and expanded coverage to six districts) by enhancing the employment potential of the people and increasing agriculture productivity and production. The principal outcomes expected from the project include enhanced capacity for sustainable livelihoods through asset transfers, enhanced capacity for employment and productive self-employment, enhanced access to basic services, increased productivity and production of agriculture produce and strengthened local capacity for agriculture and livestock service provision. IFAD’s Executive Board approved the SPPAP on 15 December 2010 and the IFAD loan became effective on 30 September 2011. SPPAP was originally due for completion by 30 September 2016. In view of the excellent performance of the Project since MTR, an additional financing of USD 25 million was approved by IFAD EB on 28 Sep 2017 with an extension in completion period (September 2020) and expanded coverage. In the meanwhile, an additional financing of US$ 39.4 million (including a grant of US$ 2.9 million) from IFAD with enhanced programme coverage of four additional districts (ex-LAMP Districts) has also been approved by IFAD Executive Board on 13 Sep 2018 with further extension in project implementation period of two-years, bringing the completion date to September 2022 and the loan closing date to March 2023 . A revised PC-I is currently being prepared to make this financing effective. An IFAD Supervision Mission was organized from 15 to 30 March 2019 with the overall objective to assess and document overall project implementation performance and the results achieved. In particular, the Mission assessed the steps undertaken to implement the additional financing and expanded coverage to additional districts. The Mission also reviewed the project’s performance in terms of overall effectiveness, efficiency and impact, and gathered lessons for the extended phase. Mission held a start-up meeting with Chairman P&D, attended a PSC meeting (as observer), visited five of the ten districts (including one new District DG Khan), previous and current phase beneficiary communities and held extensive meetings with project staff and project beneficiaries. A wrap-up meeting was held in P&D on 28 Mar 2019, chaired by Chairman P&D and attended by all key departments. Overall Project progress is rated as moderately satisfactory (4). Progress rating since the last supervision has been downgraded in view of the slow progress in operationalizing the additional financing and the consequence on the pace and level of implementation. Today, SPPAP has so far benefitted from four IFAD financing instruments for loans and from one financing instrument for a grant, as follows: Financed Amount Approval Entry into force Completion Closing Date Utilization % Loan USD 30.169 million 15 Dec 2010 30 Sep 2011 Sep 2022 March 2023 100 Loan USD 10 million 17 Dec 2015 04 May 2016 Sep 2022 March 2023 89 Loan US$ 25.00 million 28 Sep 2017 26 Sep 2018 Sep 2022 March 2023 14 Loan US$ 36.50 million 13 Sep 2018 Sep 2022 March 2023 Not yet disbursed Grant USD 2.9 million 13 Sep 2018 Sep 2022 March 2023 Not yet disbursed SPPAP has utilized almost 100% of the first loan and 89% of the second loan. The third loan of US$ 25 million was EB- approved on 28 Sep 2017, though a full year has elapsed to obtain the counterpart national-level approval of the revised PC-1 (i.e. this approval was only formally provided on 26 Sep 2018) and the addendum for the NRSP agreement (the addendum was approved on 31 Dec 2018) – without the counterpart approval, the project was highly constrained and limited to proceed with interventions and activities outlined and related to the additional financing. An additional six months have also lapsed in approving the AWP/B for 2018-19 which was finally approved on 18 March 2018 by the PSC. The first authorised advance of US$ 3.5 million for third loan has been received by the project, but no utilization has happened so far. With the last additional financing, approved in September 2018, but without any disbursement yet, the project completion date has been moved to September 2022 and the loan closing date to March 2023. While awaiting approval of the AWP/B 2019, the PMU and NRSP completed the process for selection of the poorest Tehsils and Union Council in the existing 4 and additional two districts. However, preparation for soft interventions in the 5/39 four ex-LAMP districts has yet to start as the position of Regional Coordinator has yet to be filled and a strategy for soft activities is still to be finalized. With the approval of AWP/B, SPPAP is now in a position to immediately implement activities and in all likelihood would achieve the current year targets by 30 June 2019. Given the relatively small size of the current year plan, the overall size of next two annual plans would be very heavy as the project would have to disburse US$ 25 million in a period of 18 months to remain on track. The project and its partners need to be mindful of this and formulate their plans and strategies accordingly.